The Last Mile: Connecting Milwaukee-area workers to jobs

Join us for a live chat Friday about a recent Public Policy Forum report on connecting workers to jobs. We'll be chatting with forum President Rob Henken, and Joe Peterangelo, lead author of the report. We'll also be talking about the Milwaukee County wheel tax and the Milwaukee County Transit System's finances.The chat will start at 11 a.m. but you can submit your questions early using the form below.

Thanks for joining us this week for a chat on getting workers to jobs, specifically on the question of the klast mile from the transit stop to the company door, the subject of a new study by the Public Policy Forum, which you can see above. With us are Rob Henken, forum president, and Joe Peterangelo.

Welcome guys, can we start with a brief description of the problem and your study?

by Ernie Franzen3/31/2017 4:02:54 PM

Sure. The issue is that in many places in metro Milwaukee, workers can take public transit relatively close but not all the way to their jobs. That is what we call the "last mile" problem.

by Joe Peterangelo3/31/2017 4:04:45 PM

This is actually the third in a series of reports that explore what options might be availabe to improve transit connections for central city job seekers looking for work in the suburbs. Transit systems across the country are trying some new and innovative approaches and we should be considering some of those here.

by rhenken3/31/2017 4:07:03 PM

Consistency year to year is the most important aspect for workforce transportation for employers and workers. Is ride hailing reliable over the long haul? In other areas, have fares and contracts been locked in over time?

by Kerry Thomas3/31/2017 4:07:17 PM

If an employer has chosen to locate in the suburbs -- and if they are concerned about their employees -- couldn't they provide a shuttle from the transit stop to the workplace? I'm not sure I see the need for the public to step in when the public (presumably) did not have a say in the initial suburban location.

by Senator Fats3/31/2017 4:07:25 PM

With regard to the public vs. private sector role, we are by no means saying that there has to be a public sector contribution, and the questioner is correct that employers have made their own location decisions and thus bear some responsibility for paying for transit connections if that's a problem. On the other hand, there may be a public interest in helping to foot the bill for some of these last mile solutions, as they may boost overall transit ridership.

by rhenken3/31/2017 4:09:34 PM

Employment-related rides have a much higher economic impact than other uses. How much of a consideration should this be when comparing costs outcomes and allocating resources across transportation? Are we measuring all of the right things looking just at ridership and costs?

by Kerry Thomas3/31/2017 4:09:59 PM

Is a mobile app required for success of hailing? What are strategies to ensure ride hailing is accessible to those who are likely to need last mile solutions and who may not have a smart phone?

by Kerry Thomas3/31/2017 4:10:02 PM

Kerry Thomas asked about ride-hailing. That is referring to a new trend in which transit systems are forming partnerships with companies like Lyft and Uber to provide last mile rides to and from designated transit stops. Several transit systems have formed those partnerships and have designed the services to be affordable for both the transit system and users. Regarding fares -- these partnerships are very new so it is early to say how they will develop over the long-term.

by Joe Peterangelo3/31/2017 4:11:47 PM

Our body of research has suggested that suburban transit -- which by its very nature must try to serve low-density areas that are not conducive to fixed routes -- requires higher public subsidies. We can't place a value on those subsidies -- if you are viewing them only from a transit perspective, then they are tough to justify, but if viewed through a workforce development lens there are certainly other reasons why they may be a worthwhile use of public dollars.

by rhenken3/31/2017 4:13:23 PM

How big of a problem is the last mile? Were you able to quantify how many people or companies might be affected by that gap?

by Ernie Franzen3/31/2017 4:13:32 PM

Smart phones and mobile apps have opened up new possibilities for on-demand transportation services, including partnerships with ride-hailing companies. Since not everyone has a smart phone or is familiar with mobile apps, transit systems are providing alternatives means of accessing those services. For example, in some cases, traditional taxi companies are included as an option in pilot programs as users can book rides by phone.

by Joe Peterangelo3/31/2017 4:16:02 PM

We were unable to quantify the number of individuals facing a last mile challenge, Ernie, but dozens of interviews we have conducted with employers, transit officials, and elected officials suggest it's an issue. Our latest report takes a particularly close look at the Monomonee Valley, where the Business Improvement District is currently surveying employers to try to quantify it, but we can tell you it came up in all of the interviews we conducted with employers there.

by rhenken3/31/2017 4:16:34 PM

What did you find in looking at other communities? How are they dealing with the issue?

by Ernie Franzen3/31/2017 4:18:27 PM

We did map where jobs are concentrated and how existing transit services align with those job locations. That revealed many job hubs that lack transit connectivity.

by Joe Peterangelo3/31/2017 4:20:08 PM

Communities are responding in lots of different ways, but the two broad strategies we felt might hold the most relevance for Metro Milwaukee are flexible transit and ride hailing. With regard to the former, it means using smaller (typically 14-person) vans or buses in low-density suburban areas to serve 3 to 5 mile regions. The vans can deviate from their fixed route per rider request. With regard to ride hailing, we have seen some interesting partnerships in Colorad, Forida, and other states between public transit operators and Uber, Lyft or others, in which the transit operator makes it easy to connect with the ride hailing company through their app or even subsidizes the ride in order to encourage people to use transit and make it more cost effective for them to reach their final destination.

by rhenken3/31/2017 4:22:16 PM

Who provides the flexible transit? The local bus company or the companies?

by Ernie Franzen3/31/2017 4:24:24 PM

Flexible transit services are typically provided by the transit system itself and are designed to serve areas where ridership is lower than it is in more urban areas.

by Joe Peterangelo3/31/2017 4:24:40 PM

let me interject another more social application. With limited parking available, the lakefront suffers huge traffic problems on days that draw people simply because the weather is nice. We do not discuss enough how to rectify that issue outside of increased police supervision.

by Jeff Jordan3/31/2017 4:26:10 PM

In some cases, flexible transit services are simply allowed to make diversions from set routes based on requests. In other cases there is no set route and all trips are made based on requests made by phone or through the transit system's mobile app.

by Joe Peterangelo3/31/2017 4:26:28 PM

Is Milwaukee County Transit System in a position financially to provide those kinds of services?

by Ernie Franzen3/31/2017 4:27:36 PM

Yes, Jeff -- there may be other ways to apply ride-hailing as a solution to other transportation problems like the one you cited. We also found that some transit systems (e.g. Boston) are partnering with ride-hailing companies for paratransit users. Those partnerships can allow paratransit users to make trips without needing to book rides in advance, while at the same time saving the transit system money on each trip.

by Joe Peterangelo3/31/2017 4:29:41 PM

You've just raised one of the most important considerations, Ernie. MCTS is facing some substantial financial challenges that do call into question its ability to maintain existing services, let alone add new services. In all likelihood, if the approaches we cite in our report are going to require MCTS financial support, then it could require the system to consider taking the money from other places. On the other hand, it's difficult to maintain ridership when you don't invest in new approaches.

by rhenken3/31/2017 4:30:42 PM

This is Brian with the Milwaukee County Board of Supervisors. Like Ernie, I'm sure supervisors will be curious about costs. Do you have any projections on the cost of a ride hailing app? Also, do you have any cost estimates for additional flexible transit measures?

by Brian Rothgery3/31/2017 4:31:59 PM

This table may help answer Brian's question.

Service Name & Location

Service Type

Total Operational Budget

Avg. Subsidy per Trip

Typical Fare

Call-n-Ride (Denver suburbs)

Flexible Transit

$400,000-$750,000 per area (2015)

$12

$2.60

OmniLink (Washington D.C. suburbs)

Flexible Transit

$8 million for six routes (annual)

$8

$1.50

SW Prime (Minneapolis suburbs)

Flexible Transit

$480,000 (2016)

$9

$3

*West Salem Connector (Salem, OR)

Flexible Transit

$255,000 (first year)

$21

$1.60

*Dash on Demand (Itasca, IL)

Ride-Hailing

$90-120,000 (first year)

$0

$3

*Direct Connect (Pinellas County, FL)

Ride-Hailing

$140,000 (first year)

$5

$1-2

*Go Centennial (Denver suburb)

Ride-Hailing

$400,000 (first year)

$6-7

$0

*Pilot program

Note: Data for the Denver metro’s Call-n-Ride services only includes the five areas with flexible bus routes

by rhenken3/31/2017 4:34:20 PM

MCTS is planning to develop a mobile app for its own services, which most large transit systems already have. If a partnership with a ride-hailing company were to be developed, their app could be integrated into the MCTS relatively easily, though we do not have an estimate of what that would cost.

by Joe Peterangelo3/31/2017 4:35:55 PM

The table Rob provided shows some of the flexible transit and ride-hailing case studies we examined in our research. They show a wide range of per-trip costs for the transit systems that provide them, but all are designed to cost between $0 and $3 for riders.

by Joe Peterangelo3/31/2017 4:37:08 PM

Thanks for that table, I see that now on page 36 of the report...

by Brian Rothgery3/31/2017 4:38:40 PM

It is also notable that many of these services are pilot programs. As I mentioned, smart phones and mobile apps have brought about a new period of experimentation in which transit systems are testing out new ways of providing on-demand services.

by Joe Peterangelo3/31/2017 4:39:00 PM

Not to divert the topic, but one measure that's under consideration to help county finances is Milwaukee County Executive Chris Abele's proposed wheel tax. Any thoughts on that?

by Ernie Franzen3/31/2017 4:39:54 PM

There's a referendum question on Tuesday's ballot for Milwaukee County voters that asks whether they would support a $60 vehicle registration fee to support the transit system (the County enacted a $30 fee effective this year). We're not in a position to tell voters whether or not they should support the increase, but our research has shown that without it the transit system is likely going to need to reduce service levels at some point in the not-too-distant future and/or the County is going to need to make cuts elsewhere in its budget.

by rhenken3/31/2017 4:42:50 PM

I wanted to mention that we also looked at other last mile strategies, including bike share and shared-ride taxi services. Ozaukee County's shared-ride taxi service recently expanded to serve several bus stops in Milwaukee County near the Ozaukee County border. That could help to integrate the two systems and provide easier connections to jobs in Ozaukee County.

by Joe Peterangelo3/31/2017 4:45:24 PM

With bike share, Bublr has expanded in recent years and is adding stations in Wauwatosa, West Allis, and Shorewood. We found that other metro areas are taking further steps to integrate transit and bike share by strategically co-location stations and by reducing the cost of bike share for individuals with transit passes.

by Joe Peterangelo3/31/2017 4:47:22 PM

Jumping back to the VRF...If I'm remembering correctly, the VRF is projected to generate about $13.6 million for transportation related expenditures in 2017, but the net increase to the transportation budget was only $3 million, as property tax and bonding revenues were reduced. Does the PPF recommend this approach, or would you propose to maintain existing property tax and bonding revenues in addition to the new revenue generated by the wheel tax?

by Brian Rothgery3/31/2017 4:48:44 PM

Your question is a good one, Brian, but unfortunately there's no good answer. Using the VRF revenue as a means of substituting for bonding has its benefits, the most obvious of which is that it would reduce debt service in future budgets. However, given the County's huge backlog of capital needs, an argument also could be crafted that the County should maintain its bonding levels and use the VRF revenue to supplement its capital program. It depends where you stand on the County's capital needs and on the optins for not addressing them, like liquidating assets.

by rhenken3/31/2017 4:51:57 PM

Since we had a brief diversion to the "Wheel Tax" I want to comment on that subject. The vast majority of the public feel that this tax is specifically to support MCT. The reality is that the County owns and maintains "County Roads" and "County Bridges" that will also benefit from the "Wheel Tax." Plus, the bridges and roadways in our 158 Milwaukee County Parks. Everyone wants the wonderful public services provides here in Milwaukee County but very few want to pay for them. Perhaps we need a PR program reminding our citizenry that their is "no free lunch." If we want governmental services we have to remind ourselves that few things in life are free.

by Supervisor David L Sartori3/31/2017 4:53:23 PM

Good point, Sup. Sartori. Wheel tax revenues by state statute must be spent for transportation purposes, but that also includes county highways and bridges as well as parkways, I believe. Indirectly, the VRF also benefits the entire capital program because it relieves the County from having to use its limited borrowing capacity on transit or transportation, thus freeing up capacity for other needs.

by rhenken3/31/2017 4:55:30 PM

Apologies for jumping around, but I have a follow up on the ride hailing apps. From reading a few of the case studies it seems like the rides are still subsidized, and riders pay a fare, but does the municipality have to pay the development costs for an app that is unique to their municipality? Or does the rider simply pay for the app when they download it to their mobile device? Or is the app free to download?

by Brian Rothgery3/31/2017 4:59:44 PM

The apps are free to download and there is not necessarily any cost to the transit system either. Often riders just use a code when they book the ride on the ride-hailing company's app, which allows them to receive any subsidy the transit system may be providing.

by Joe Peterangelo3/31/2017 5:03:29 PM

Got it...thanks. And thanks for the report and this discussion! I'll make sure a hard copy goes in the mailbox of every supervisor.

by Brian Rothgery3/31/2017 5:04:49 PM

It's getting about time to wrap this up, although we'll leave the chat open for another hour for those who want to post something. But are there any final thoughts from the report you want to make sure we understand?

by Ernie Franzen3/31/2017 5:05:12 PM

In some cases, the transit systems are integrating the ride-hailing company's apps into their own mobile app to streamline rides that involve both transit and ride-hailing. There may be a cost to integrating the apps like that.

by Joe Peterangelo3/31/2017 5:05:31 PM

One of the main takeaways for us was the fact that many of the last mile solutions being tried in other metro areas are doubling as ways to modernize traditional mass transit and make it more attractive for today's lifestyles and technologies. That's something we have to think about, notwithstanding the significant financial challenges facing Milwaukee County and the burden already placed on citizens through their local taxes and fees.

by rhenken3/31/2017 5:09:01 PM

Thanks much for participating in the chat, and for your thoughtful answers. The conversation on this will, of course, go on as the region continues to wrestle with transportation issues. And thanks to all the watchers and commentators. Be sure to join us next time.